Why is redemption important?

Answer 1

When you default on a home loan and your lender had delivered you the Notice of Default, you have the option of trying to save your home through loan modification. Your lender may also have other options you can pursue if you contact them immediately when you begin to slip on your finances. However, very few homeowners know about all their legal options that may be available to them. One very important option to be aware of is that some states provide for a redemption period after foreclosure.

What is a Redemption Period After Foreclosure? The redemption period is a state regulated statute that allows a homeowner the opportunity to live in the home at the time of foreclosure without being evicted. More importantly, in states with a redemption statute, the homeowner is also given the first opportunity to regain ownership of the property by paying for the home at the foreclosed price.

The length of time allowed for the redemption period is always dependent upon which state the property being foreclosed on is located in. Since this is a state regulation, some states may not even offer this option, some states may offer a period of 60 to 90 days, and other states may offer no more than several days to a week. It's the homeowner's responsibility to be knowledgeable as to whether or not this right is extended and for how long.

Why Does The Redemption Period Matter?There are obvious benefits to the property redemption program, but there are also some less obvious benefits as well:

• When the time comes that the foreclosure is inevitable, and there is no way the homeowner can pay the money needed in order to retain ownership of the property, the redemption period provides time for the homeowner to consider other options he has regarding his future living situation without having to make an immediate adjustment from the home to a smaller dwelling.
• Another benefit is the fact that the redemption period can allow the homeowner much needed time to take care of bills that are piling up, or take care of issues with other creditors and to begin to take back control of other financial issues. This can be extremely helpful to a homeowner who has multiple financial problems.

The reason the redemption period is so important is because, when utilized properly, the homeowner can either find the means necessary to retain ownership of his or her property without ever having to leave it, or the time can be used to straighten out any other financial matters that may be weighing on the homeowner.

Talk to a Foreclosure Defense Attorney To find out if your state offers a redemption period and to take advantage of this legal option, you should get the help of a lawyer who specializes in foreclosure. Your lawyer can provide you with an overview of all of your options during foreclosure and can help make sure your rights are protected.